Sunday, December 28, 2008

What to invest in 2009?

Personally after looking at so many reports and their respective analysis. I feel that buying soft commodities might still be the best investment for next year. Some possible soft commodities include Soya bean, rice..etc.

These are some reason why i think so :
  • China/India's population is still growing, hence there will be more demand for this.
  • Supply of these soft commodities will be reduced as farmers will not be able to get loans from banks to buy fertilizers to increase their yield.
  • With more demand and less supply, price can only go up.
  • AND!..personally I feel that soft commodities is not as widely covered in the news as other stuff like oil/stocks/properties. Hence there is room for the price to run up. ( Because the best stuff to buy is not when the price has stared to go up, but rather before the price starts to go up)

Next, if you are interested, oil seems to be a good buy too. Downside risk is low also, as the price now is really low. However if the economy does not recover, the demand for the oil will still remain low and hence you will not get as much returns. But if you could also make a short term lost, if the economy gets worst.

Following, stocks seem to be quite a good buy. However practise dollar cost averaging over the next year. I personally will start buying in slowly after march, and on dips. Buy using TA to try to catch the uptrend, but if I fail to get the uptrend as I actually intend to keep these stocks for long term.

Finally property. In Singapore, it might not be a good time yet. Approximately 44% of homes bought last year will TOP in 2009. If people who bought homes last year, and are not able to pay, most probably they will have to sell these homes at a lost.

*updated the other blog of mine at